SharePlanner (< 20)

Swing Trade Quick Pick: Hornbeck Offshore Services (HOS)

3

I like this trade setup quite a bit and has served me well so far with Hornbeck Offshore Services (HOS).

I swapped Diamond Offshore Drillers (DO) for HOS and the net gain between the two has been much better had I just stayed in overextended DO.

The ascending triangle breakout at the highs is often times one of you most reliable trading price patterns that you'll find in a very strong bullish market. I also like how the coiling price action represents less than one-third of the total price move from the April lows. That helped confirm for me that he price move was much more of a temporary holding pattern than any shift in market sentiment, which gave me the trading edge I was looking for.

My top stock pick, Chyr, a micro cap. great response on recent merger For the year 2012 Chyron had $30.2 m in revenue. The company reported in the Q1 2013 earnings call that it had identified $3m in annual savings, realized through reductions in the labor force. The operating loss for the first quarter os 2013 was ($.81m), if transition costs related to the merger are excluded the operating loss becomes ($.11m). Hego brings to the table $14.8m in revenues and earnings of $1.6m...with Hego's 2012 revenue showing a substantial growth rate of 40%. Thus it doesn't take much in the way of wishful thinking to see a profitable ChyronHego by the end of 2013. I am convinced that it is reasonable to conclude that ChyronHego' will exhibit an ability to expand their market share horizontally by exploiting opportunities in what was once two separate clientele bases, this will act as a force multiplier in driving sales and revenue growth. I calculate that ChyronHego could be generating $52m or more in revenue in 2014. Shielding future profitability will be Chyrons $47m in NOL's If revenues are to grow at a reasonable 15% + rate over the next year...resulting in our previously stated assumption of $52m in revenues in 2014. Along with an assumed 10-12% operating profit, sheltered from taxation, $6.12m in earnings could be realized in 20I presume that there will be 34m shares outstanding. With an assumed P/E of 14, an estimated EPS of $.18 could result...a rough target price range of $2.20- $2.50 in 2014.